Stock Y Has a Beta of

question 3

Multiple Choice

Stock Y has a beta of .79 and an expected return of 7.93%. Stock Z has a beta of 1.31 and an expected return of 12.3%. What is the risk-free rate of return assuming that both Stock X and Stock Y are correctly priced?

• A)1.20%
• B)1.29%
• C)1.43%
• D)2.83%
• E)3.30%

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Definitions:

Operating Funds

Operating Funds are resources allocated for the day-to-day functioning of an organization, covering expenses such as salaries, utilities, and rent.

Apprenticeship Training

A program that combines on-the-job training with related classroom instruction, under the supervision of a skilled worker.

Project Analyst

A professional who evaluates and reviews the performance, cost, and timeline of projects to ensure success and efficiency.

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Training conducted at a location close to the workplace or within a short distance, facilitating easy access for participants.